Gov. Walz presents entire One Minnesota Budget
ROCHESTER, Minn. (KTTC) – Governor Tim Walz and Lieutenant Governor Peggy Flanagan presented their entire One Minnesota Budget Tuesday, Jan. 24, 2023.
The final package within the One Minnesota Budget includes $8 billion in tax cuts for seniors and working families, direct checks of up to $2,600 to help Minnesotans afford rising costs, and a framework to legalize and regulate adult-use cannabis.
Tuesday’s roll out followed announcements focused on supporting children and families, investing in Minnesota’s economic future, and protecting Minnesotans’ health and safety. Details for the entire One Minnesota Budget can be found online here.
“Over the last week, we laid out our plan to make Minnesota the best state in the nation for children, invest in our economic future, combat climate change, and improve public safety across the state. Today, we lay out the full picture of how this budget will lower costs, cut taxes, and improve lives for Minnesotans,” Governor Walz said. “With the largest tax cut in state history, the One Minnesota Budget invests directly in the people that made our state strong in the first place. For a middle-class family of four, the One Minnesota Budget could put $10,000 back in their pocket. We are delivering a transformational budget for Minnesotans, and I look forward to getting this done.”
“From centering kids and families and protecting our climate to investing in the health and safety of everyone in Minnesota and providing meaningful and historic tax cuts for working families and seniors, the One Minnesota Budget provides a clear roadmap of our shared values,” Lieutenant Governor Flanagan said. “We have a once-in-a-lifetime opportunity to invest in the people and places across Minnesota and deeply improve lives for generations to come. The investments and proposals throughout the One Minnesota Budget meet that moment.”
The Governor will also highlight his plan to improve the state’s infrastructure later this week.
Watch the full announcement below:
Below is more information on each of the sections of the budget.
Provide Direct Payments and Tax Cuts for Working Families and Seniors
Minnesotans continue to drive the state’s economy forward and as a result, Minnesota has a historic surplus. The Governor and Lieutenant Governor recommend sending nearly $4 billion of the state’s surplus directly back to Minnesotans in the form of checks up to $2,600. These direct payments would be structured as an advanced income tax credit equal to $2,000 for families with income below $150,000 and $1,000 for single filers making less than $75,000. More than 2.5 million Minnesota households would receive a check in the One Minnesota Budget. The Governor and Lieutenant Governor also recommend $219 million to reduce taxes on Social Security benefits for over 350,000 Minnesota households. This proposal would expand the number of seniors eligible for lower Social Security taxes and raise the thresholds at which the tax cuts start to phase out. The Governor and Lieutenant Governor recommend increasing the Local Government Aid and County Program Aid programs by $30 million each, assisting cities and counties with improving their local roads and infrastructure and keeping property taxes low for Minnesotans. The Governor and Lieutenant Governor also recommend increasing the School Building Bond Agricultural Credit to help support schools in greater Minnesota and lower property taxes for farmers. This comes after the Governor proposed over $1 billion over four years in tax credits to expand the Child and Dependent Care Credit and $1.1 billion in tax cuts in 2024-2025 and $1.2 billion in 2026-2027, creating a nation-leading Child Tax Credit and cutting child poverty by 25%. The Governor also proposed significant tax cuts through the Angel Tax Credit and the State Historic Structure Rehabilitation Tax Credit.
Legalize Adult-Use Cannabis
Governor Walz and Lieutenant Governor Flanagan recommend funding for the safe and responsible legalization of adult-use cannabis in Minnesota. A new Office of Cannabis Management would be responsible for the implementation of the regulatory framework for adult-use cannabis and hemp-derived products, along with the medical cannabis program. The recommendation also includes funding for grants to assist individuals entering the legal cannabis market, additional resources for substance use disorder treatment and prevention, and expungement of non-violent offenses involving cannabis.
Build a Clean Transportation System
Governor Walz and Lieutenant Governor Flanagan are committed to developing a reliable and clean transit system that provides improved access and air quality. The One Minnesota Budget provides $29.2 million in one-time funding to purchase up to 30 battery electric buses with charging infrastructure in place of replacement diesel buses. Governor Walz and Lieutenant Governor Flanagan recommend $2 million each year to leverage federal Infrastructure Investment and Jobs Act (IIJA) funds that invest in efforts to reduce carbon emissions, expand the state’s electric vehicle charging network, and build a more resilient transportation system. Governor Walz and Lieutenant Governor Flanagan also recommend a significant investment to provide the state match for IIJA-funded multimodal transportation projects across Minnesota, improving the quality and performance of the state’s transportation system.
Invest in Minnesota’s Higher Education System
Governor Walz and Lieutenant Governor Flanagan propose increased funding for the state’s two public higher education systems, Minnesota State and the University of Minnesota, and for the state’s tribal colleges. The proposal ensures tribal colleges receive the same per-student funding as other Minnesota public higher education institutions. The One Minnesota Budget also provides funding for Minnesota State to increase student mental health support.
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